MERSEYTRAM'S route around Liverpool city centre will be halted if it looks likely to cause disruption in the city's Capital of Culture year.

MERSEYTRAM'S route around Liverpool city centre will be halted if it looks likely to cause disruption in the city's Capital of Culture year.

The Daily Post can reveal that a compromise deal between the city council and Merseytravel over the #225m Line One is close to being agreed.

It follows a period of uncertainty for the entire trams project, after Liverpool's chief executive David Henshaw questioned whether the route could be delivered in time for 2008.

That led to fears Merseytram might collapse with #170m of government funding returning to Whitehall.

The deal involves Merseytravel offering to "turn the tram around" at William Brown Street (between St George's Hall and The Walker) if the scheme looks like running late.

A proposed loop around the city centre - taking in Lime Street, Queen Square, the Pier Head, Albert Dock and Paradise Street - would be left until 2009 before completion.

Merseytravel chief executive Neil Scales is adamant his project will not disrupt Capital of Culture year and has had this offer on the table for some time.

That left his officials all the more puzzled by Mr Henshaw's decision to cast doubts on the Merseytram timetable 10 days ago.

Mr Scales said: "If, for whatever reason, it looks like we will not finish in the city centre in time for 2008, I will turn the trams around at William Brown Street.

"We would not only stop work in the city centre loop but would clean up the city for the visitors.

"It is not in our interests to leave the city a mess.

"And remember the finishing dates being given for the Fourth Grace is March, 2008, and the Grosvenor development is June, 2008."

It is hoped progress on a deal can move forward with the return of Mr Hen-shaw from holiday next week.

A public inquiry into Merseytram will start on April 20, and Merseytravel is keen to remove as many objectors as possible before it starts.

Mr Scales said: "My target is to get no objectors at the public inquiry but clearly that is not going to happen. But I am confident we will have dealt with the statutory objections from people like the gas and electricity companies."

Mr Henshaw's concerns about the tram timetable was contained in a letter sent to key figures including MPs, council leaders and senior Government officials.

In it, he said the council had been unable to get categoric assurances from Merseytravel that work would not interfere with the thousands of extra visitors expected in 2008."